Online Banking Tip

Ah the joys of online banking! The convenience of online banking is undeniable … the ability to check balances and pay bills online can be a (financial) lifesaver. Paying those bills a day or two before the due date keeps the funds in your account earning interest, while avoiding the perils of late payments. Want to make life even easier? Here’s an online banking tip that can save your sanity (and your $$$) …

With some credit card accounts, just one late payment will incur a considerable penalty. One day late and you’ll have to cough up twenty or thirty dollars (or more) in late fees. Even worse, the credit card company can crank up your interest rate to a heinous level at the drop of of a hat.

So how do you use online banking to avoid the possibility of that ever happening?

It’s simple …

Check to see if your credit card company offers an automatic payment option. If they do, set up your account so that it automatically makes the minimum payment each month. In just one fell swoop, you’ll keep yourself out of financial hot water (assuming that you have enough in your online banking account to cover the payments each month, of course).

That having been said, you don’t want to only make the minimum payment each month. (Otherwise, it will literally take forever to pay off those bills.) Thankfully, with most accounts you’re most likely not limited to making one payment each month. Use the auto-pay to cover the minimum (and ease your stress level) and make a second payment each month from your online banking account to pay down those bills.

Related: Online Bank Statement Oddity